Airasia has done well for 2Q2009

Airasia has just announced its results for 2Q2009 ended 30/6/2009. Its net profit dropped by 31.5% q-o-q to RM139 million while its turnover dropped by 7.9% to RM657 million. Compared to 2Q2008, net profit jumped nearly 14-fold while turnover was only 8% higher.


Table 1: Airasia's 8 quarterly results

Airasia has been able to improve on its performance due to its ability to draw in the crowd by offering lower fare without sacrificing its profit margin. This is clearly illustrated by the 2 tables below.


Table 2: Airasia's key performance indicators for 1Q2009 compared to 1Q2008


Table 3: Airasia's key performance indicators for 1H2009 compared to 1H2008

Looking at Chart 1 below, we can see that Airasia has enjoyed a steady growth in its turnover for the past 13 quarters. However, it is noted that Airasia for the first time has suffered a drop in its sale for 2nd quarter when compared to the preceding quarter. This reflects poor consumer confidence arising the sharp economic downturn & the spread of the H1N1 flu.


Chart 1: Airasia's 13 quarterly results

Airasia has recently surpassed the horizontal line of RM1.40. The next strong resistance is at RM1.65.


Chart 2: Airasia's weekly chart as at August 12, 2009 (Source: Quickchart)

Airasia has proven itself by reporting a satisfactory performance in a tough operating environment. It is a stock worth accumulating at the present level. If it pulled back to RM1.25-30 (near to its 20-day SMA line), it deserves more aggressive buying.